BWP Trust (BWP) H1 2026 earnings summary

Executive summary

• Achieved strong half-year results with net profit after revaluations up 41.2% year-over-year to $221.8 million, driven by portfolio revaluation gains, improved leasing spreads, and internalisation of management, including Bunnings lease reset and WALE extension to 7.5 years.

• Completed acquisition of Home Centre Morayfield for $48 million, fully leased and earnings accretive, increasing exposure to large format retail (LFR).

• Declared interim distribution of 9.58 cents per security, up 4.1%, payable 27 February 2026, with FY26 distribution guidance affirmed at 19.41 cents per security, a 4.1% increase year-over-year.

• Board changes: Tony Howarth AO retired as Chair, succeeded by Fiona Harris AM.

Financial highlights

• Net profit after fair value movements increased 41.2% to $221.8 million, driven by $155.9 million in property revaluation gains.

• Total income for 1H FY26 was $103.6 million, up from $100.6 million in 1H FY25.

• Funds from operations (FFO) rose 6% to $70.4 million; distribution payout ratio was 98.6%.

• Portfolio valuation uplift of $155.9 million, with cap rate compression to 5.27%.

• Net tangible assets per security increased to $4.00.

Outlook and guidance

• Reaffirmed full-year distribution guidance of 19.41 cents per security for FY26, a 4.1% increase year-over-year, subject to no major economic disruption.

• Capital expenditure of $60–70 million expected for FY26, focused on repurposing and tenant-led expansion.

• Continued focus on internalisation transition, cost of capital optimisation, and capital deployment for growth and site repurposing.

• Most repurposing timing differences expected to be completed in the first half of FY27.

• 93 leases to be reviewed for rent increases in the second half, with three Bunnings market rent reviews pending.